Remote work boosts employee wellbeing and retention, US study finds

A recent study published in Frontiers in Psychology found that working from home is linked to higher psychological wellbeing among employees and may reduce their likelihood of leaving their jobs.

Researchers analyzed data from more than 7,700 employees at a large healthcare organization in the southwestern United States, including remote, office-based, and hybrid workers.

Remote workers reported the highest wellbeing, averaging 4.22 out of 5, compared to 4.12 for hybrid employees and 3.89 for those working from the office. Stephanie Johnson, professor of organizational psychology at the University of Colorado Boulder, said allowing employees to choose how they work boosts their wellbeing, while denying this choice may not yield positive results.

The study found no clear evidence that remote work weakens communication or reduces employee cohesion. Results showed remote workers had slightly higher positive engagement with their workplace than others, though the difference was not statistically significant.

Researchers noted that communication effectiveness depends more on the methods used than on employees being physically together.

Data from the organization showed that only 7.8% of remote employees left their jobs over one year, compared to 8.3% of hybrid workers and 8.8% of office-based staff.

The study concluded that higher employee wellbeing is linked to a lower likelihood of resignation, emphasizing that work organization and communication are more important than work location.